Earticle

초록

영어

Although it has often been studied in finance research, the relationship between dividend yields and stock returns remains an unresolved issue, especially in the Korean stock market. When firms continue to pay non-decreasing dividends for three or five years, they may establish a dividend reputation, which could affect this relationship. I find firms that pay more dividends, larger firms, older firms, more profitable firms, less leveraged firms, firms with less volatile returns, firms with foreign holdings of more than 5%, and firms with more concentrated ownership build dividend reputations. I also find that the relationship between dividend yields and future stock returns depends on a firm’s dividend reputation. The evidence shows that when firms with higher yields have dividend reputations, they produce higher future returns, whereas there is no significant relationship between yields and returns for firms with no reputation. These results are inconsistent with the findings of studies that use developed market data. In addition, when larger firms with higher growth potential and firms with less concentrated ownership have dividend reputations, future returns are higher.

목차

Abstract
1. Introduction
2. Data and Variables
3. Determinants of Reputation Building
3.1 Characteristics of reputation-established firms
3.2 Logit regressions
3.3 Cross-sectional regressions
3.4 Reputation-established firms and portfolios formed on size and market-to-book ratio
4. Relationship Between Dividend Yields and Future Stock Returns Based on Dividend Reputation
4.1 Regressions for dividend reputation and no-reputation groups
4.2 Relationship between dividend reputation, yield, and future returns
5. Conclusion
References

키워드

저자

• Ryumi Kim [ School of Business, Chungbuk National University, Cheongju, Korea ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330